market report

Liv-ex is an electronic exchange for fine wine used by professional merchants and collectors. Market Report is part of a package of services offered to subscribers of Liv-ex, with subscriptions starting at
£49.95 per year. Below is an extract from the latest Market Report. For the full report and to access Liv-Ex's services, sign-up with them at
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Liv-Ex Market Report
by Liv-ex.com, December 2009

Trading
Confidence in the fine wine market built steadily throughout 2009 and
December rounded off the year on a high. Trading was up 20% on
December 2008, with the exchange busy right through the festive period
(and the surprise arrival of heavy snow in the UK). It was top-class
Bordeaux that garnered the lion’s share of demand, with traders
undoubtedly keeping one eye on the approaching Chinese New Year.
December saw prices continue to climb, with the Liv-ex 100 Fine Wine
Index moving up to 237, an increase of 0.9% on the month. The index
finished the year up an impressive 15.7%. The best-performing Liv-ex
index in 2009, however, was the Liv-ex Claret Chip (which tracks topscoring
First Growths from the last 15 years); its rise of 19.8% being largely
driven by strong gains for Lafite and Mouton. (See www.liv-ex.com for
details or find the Liv-ex 100 on Bloomberg: see index code LIVX100.)

(more analysis in the full report)

Major Movers
The big names of Bordeaux are once again pushing to the front of the
pack, with the 1998 vintage in particular putting in a strong performance
(a subject we will come back to in next month’s report). Petrus 1995 makes
an appearance for the second month in a row, and is now fast
approaching its 2008 high. Lafite refuses to cede ground, however, with
the uplift for the 1989 vintage a signal that the rapid price increases seen
for the brand in the second half of 2009 look set to continue into the new
year.
Those on the downward slope are a far more eclectic bunch, with five
different regions represented. A sign, perhaps, that the market remains
relatively soft where the Far East isn’t playing.